Nintendo shares skyrocket with release of Pokemon GO

by Ryan Smith13 Jul 2016

SHARE

Nintendo shares skyrocket with release of Pokemon GO

Pokemon GO, the long-awaited mobile “augmented reality” game, is finally out, and it’s been a windfall for Nintendo. The company has seen market-value gains of US $7.5 billion in just two days, according to a Reuters report.

The game allows players to walk around their neighborhood looking for characters on their smartphone screens in a kind of virtual scavenger hunt. Within two days of its release in the United States, the game had been installed on more than 5% of all Android devices in the country, according to Reuters.

The game’s unprecedented popularity has caused Nintendo’s stock to soar. Shares spiked by a quarter in value Monday to their highest level since November, Reuters reported. Since Thursday’s close, Nintendo shares have gained 36%.

The game may not provide an immediate boost to Nintendo’s profits, however; the game itself is free, and Nintendo isn’t the sole owner of the game or franchise, Reuters reported. The game was created by developer Niantic and the Pokemon Company – although Nintendo does own stakes in each organization. But many analysts feel Nintendo could see significant profits from small in-app purchases players can make within the game.